Transnational Education (TNE) - Opetushallitus...• Vietnam is a strong TNE market with significant potential. Overseas study is common and there is a growing trend for domestic Overseas

Transnational Education (TNE)

Common models and opportunities for Finland

• Context

• Covid-19

• Motivations

• The ‘TNE equation’

• Case studies

• Balancing academic quality with commercial viability

• Leveraging the Finnish advantage

• Next steps and recommendations

Contents

TNE in Asia

Context

Context

What is TNE?

Definitions can be confusing and vary greatly throughout the world, making comparisons difficult.

Our preferred definition:

All types of higher education study programmes, or sets of courses of study, or educational services (including those of distance education) in which the learners are located in a country different from the one where the awarding institution is based.

OECD/UNESCO, 2014

• >50% of international students with UK HEIs studied part or all via TNE (2016, UUKi and British Council)

• 84% of UK Universities operate TNE programmes (UUKi, 2019)

• Asia accounts for over 50% of all TNE students for the UK (UUKi, 2019)

• UK TNE student numbers grew 13% 2014-2015 (BC, 2016)

• 666,000 students were taking part in UK TNE programmes in 2015 (BC, 2016)

• Mature markets (Hong Kong, Malaysia) stagnating, emerging markets (Myanmar, Sri Lanka) seeing >50% YoY growth (UUKi, 2019)

• 67% of TNE students are at the UG level (AusGov, 2016)

• High-profile models such as full branch campuses may be the more visible models, but account for only a small portion of global TNE operations

• There is a growing trend of empowerment of the local delivery partner

• Modes of delivery have become increasingly flexible, especially in the current Covid-19 climate

• There are many aspects to the TNE model: academic, content, commercial and partnership, and any given partnership has its own DNA

Context

3 of the top 9 TNE countries are in SE Asia, 6 of 9 in Asia

Top TNE host countries (JISC 2018)1. China 2. United Arab Emirates 3. Malaysia 4. Singapore 5. Qatar 6. South Korea7. Hong Kong 8. Mauritius 9. Vietnam

English-speaking countries lead the way in TNE export

Top TNE exporting countries (JISC 2018)1. UK

2. USA3. Australia4. France

5. Germany6. Netherlands

7. Russia

8. China9. Canada10. India

Growing interest in non-traditional exporters:- often to meet regional needs- focus subject strength

TNE in Asia

Covid-19

Covid-19

EAIE survey

Covid-19

“This post-mobility world goes beyond physical space, surpasses state borders and considers a broader global society and the responsibilities that we have. Our task at hand is to make a stronger case for TNE.” Jenny Lee, Professor at the Center for the Study of Higher Education at the University of Arizona

“The coronavirus will accelerate trends that would have taken decades to unfold, such as blended learning, intra-regional mobility and TNE growth” Janet Ilieva, Education Insights

“Transnational education will bloom as coronavirus keeps international students away” Universities UK

“The global online degree market will double in value.” HolonIQ

Covid-19

Impact on TNE

- Expectation of significant impact in international intakes (mobility-dependent)

- Significant revenue hole for traditional destination universities

- Expedited ability in distance learning from all stakeholders

- Reluctance of students/parents to take risks, many ‘stay close to home’

- Key new element to destination choice – safety

Negative impact Positive impact

Student mobility destinationsDestinations with high % of international studentsCountries perceived to have handled Covid-19 badly (eg UK)

Local institutionsDistance and blended learning providers Transnational education offeringsCountries perceived to have handled Covid-19 well (egNZ)

TNE in Asia

Motivations

Motivation

Motivation Considerations

Reputation Success by association from choosing the right partner. Also, significant part of ranking success (critical in the international space).

Profile/Awareness Promotion focused on a locally-delivered programme in a specific market can far outweigh remote promotion. Many institutions fear negative impact on recruitment to main campus due to local offerings, however the reverse is usually true due to increased awareness.

Student throughput –general

For X+Y or preparation programmes, the main motivation can be delivering students to the home campus, which means the overseas element can be offered at break-even point.

Student throughput –specific

Targeted to specific majors, levels or demographics. Important however to resist the danger of using TNE to plug numbers in underperforming programmes –often the same reasons those programmes underperform in the home campus also apply overseas.

Revenue Should not be ignored as a valid motivation. Somewhat linked with student throughput but can be achieved without throughput to main campus.

TNE in Asia

The TNE ‘equation’

The TNE ‘equation’

Set Up Acting as Partnership

University to:

Financial Academic level

Quality control

Content Subjects Delivery mode

Ty

pe

sBranch campusJoint-brand campusProgramme(s) within existing instituteArticulation only

AloneConsortium

UniversityCollegeCommercial partner (:onward)Self-managed

Joint ventureRevenue sharePer capita feeSplit by deliveryFully owned

UG – single awardUG – joint awardPG TaughtPreparation

Flying facultyBespokeSOP3rd party management with supervisionJV-managedFully ownedArticulation only

Overseas institutionLocal institutionJointly-created3rd partyConsortiumFully owned

ComprehensiveSpecific

F2F one locationF2F splitF2F multipleBlended LearningDistance Learning with touchpoint centresDistance Learning

Co

nsi

de

rati

on

s

Set up costsLocal regulatory approval

Brand power/risk as a standaloneBrand can be diminished in consortium but can be powerful tool for generating awareness for smaller countries and specific specialisms

Alignment with motivationPreparation or partnership?Relative strength of brands

Who collects the fees?

Regulatory frameworks Local approvals neededLink to motivationsCan be multiple

Strong link with financial viabilityStrong link to numbers and locationsScalabilityBrand risk

Brand riskConsistencyEase of operating

Linked to scale and attractiveness to market

Costs (student and institution)ScalabilityRegulatory acceptanceCustomer acceptance

F2F = Face-to-face

Pros and cons of key aspectsPros Cons

Set Up Full branch campus • High profile, prestigious • Not agile• Location limited• High cost

Joint-branded campus • Profile raising for both organisations if matched

• Complementary offering

• Aligning prestige of brands• Risk element by association

Programmes within existing institute

• Low cost• No legal entity to create/manage

• Often very low numbers• Exclusivity and competition within institution

Articulation only • Cost-effective – local market dynamics at play, less commercial pressure on overseas leg

• Associating name and brand with limited control • Difficult to forecast or ‘lock in’ students

Acting as Alone • High visibility of brand• Control

• Challenging for low-profile institutions to attract partners and student numbers

Consortium • High profile and credible• Ensures broad offering and strengths• Government support and backing

• Diluted impact for individual brands• Balancing multiple organisation objectives• Disproportionate recruitment/throughput

Partnership University • Credibility• Access to facilities and faculty • Local access eg MoE, workplace

• Risk of lacking commercial drive to ensure financial viability in terms of both recruitment and operating model

College • Often suited to pathway/preparation programmes

• Not seen as ‘peer’ of overseas university

A commercial partner • Can provide the commercial drive needed• Hungry for success• Often brings deep sales and marketing

expertise• Willingness to take on all commercial risk

• Perception of inappropriate partnership with profit making organisation

• Significant dilution of revenue

No partner • Complete control• No sharing of revenues

• High capital expenditure• Difficult to be fully atuned to local needs


Financial Fully owned • No dilution of profits • High risk exposure• High initial investment

Joint venture • Complementary organisations can play to strengths

• Aligned financial motivations

• Ensuring the right partner and alignment of motivations• Severance at end of period

Revenue share • Equal ‘skin in game’ after costs• Relatively simple to administer

• Apportioning and managing operational costs

Per capita fee • Transparent• Reflects value of services provided

• Imbalanced share of success

Split by delivery • Neat• Local price can reflect local costs

• Total cost may not reflect value• Differentiated pricing may increase student attrition mid

programme

Quality Control Flying faculty • High level of quality control• Closest to authentic ‘international’ experience

• Rarely financially viable unless at high volumes• Significant travel commitment and environmental impact• Not seen as significant differentiator if quality local staff are

available; value can be added through video lectures etc

Bespoke • High level of quality control• Can tailor to meet particular partnership needs

• Rarely financially viable unless at high volumes• Not scalable• Likely significant travel commitment and environmental

impact

SOP • Scalable• Efficient• Encourages further TNE rollouts• Possible ‘Brand Finland’ differentiator

• Relatively costly and time-consuming to set up• Strong planning required in early phases to ensure

sustainability and scalability

3rd party-managed • Access to specific expertise • Financial model can reduce investment need• Can be local and close to operations• Can have strong reporting mechanisms written

into contract to minimise risk

• Some dilution of revenue• Need to manage expectations of input into partner

processes• Brand risk of ‘delegation’ of key element

Articulation only • One off and paper-based programme recognition and outcome mapping exercise

• Loose link and easy to replicate


Content Overseas institution • Entirely suited to destination context• Maps well to onward study

• Challenge of compatibility and consistent learning outcomes

Local institution • Entirely tailored to local context• Maps well from pre-study

• Challenge of compatibility and consistent learning outcomes

Jointly-created • Collaborative• Tailored to combination of contexts

• Complex and time-consuming to create

Third party • Efficient• Written ready for partner delivery

• Cost implication• Alignment with academic elements of both parties

Subjects Comprehensive • Potential to achieve scale• Accurate recreation of overseas institution

• Can be difficult to achieve scale• Significant cost and risk exposure

Specific • Limited investment• Reduced risk• Fewer stakeholders

• Limited economy of scale• Market demand may shift away from programme

Delivery mode Face-to-Face one/multiple

• Traditional classroom environment • Full learner experience

• Difficult to scale• Limited geographies

Face-to-Face split • Cost-effective for students• Experience of two learning and living contexts

• Overseas element cost implication• Making the learning experience and outcomes

seamless

Distance learning • Scalable• Flexible

• Local country regulatory approval and recognition• Student/parent acceptance varies by market

Distance Learning with touchpoint centres

• Scalable and flexible• Offers elements of Distance Learning and

Blended Learning without full academic quality management implications

Key considerations- What is your risk tolerance in terms of academic quality?- What is your risk tolerance commercially?- Are your and your potential partner’s motivations compatible?

TNE in Asia

Case Studies

Case study: RMIT Vietnam


University to:


Quality control


Ty

pe

s

Branch campusJoint-brand campusProgramme(s) within existing instituteArticulation only

AloneConsortium


Joint ventureRevenue sharePer capita feeRoyaltySplit by delivery Fully-owned


Flying facultyBespokeSOP3rd party management with supervisionJV-managedFully-ownedArticulation only

Overseas institutionLocal institutionJointly-created3rd partyConsortium



Australian university with a long-established and fully-owned campus in Ho Chi Minh City

Case study: RMIT Vietnam

Partners NAUnusually, RMIT were invited by the Vietnamese government to open a fully-overseas owned university. Buildings have been purchased directly.

Founded

Estimated student numbers

2000

9,000

University motivations Reputation – key driver. Prestige of being the first fully overseas institution operating in Vietnam, a key potential market at the time.Profile – presence in key strategic market has significantly increased market recognition. Revenue – probably not the initial key motivator, especially given the price point in 2000, however this will now be providing a significant contribution.Throughput – some X+Y programmes, and opportunity to transfer campuses, but not a major factor

Notes • The opportunity to set up a fully-owned overseas campus is rare in Asia, and is generally only by direct and targeted invitation of the government.

• Vietnam is a strong TNE market with significant potential. Overseas study is common and there is a growing trend for domestic students to attend international schools for K12 education in English and learning towards overseas school qualifications (AP, A Level, IB). Price point is a key element however in Vietnam, so revenue may not be a major motivator in the short term.

Success rating RMIT Vietnam has been a major success. First-mover advantage has been a significant factor and as yet there is no other significant managed campus in Vietnam on anywhere near the same scale. Increased profile in the Vietnam market has also cemented RMIT’s recruitment into Australia.

Success Effort

Case study: University of Nottingham, Ningbo

Set Up Acting as PartnershipUniversity to:


Quality control

Content Subjects Delivery modeT

yp

es


AloneConsortium

UniversityCollegeCommercial partnerSelf-managed

Joint ventureRevenue sharePer capita feeRoyaltySplit by delivery Fully owned



Overseas institutionLocal institutionJointly-created3rd party

Comprehensive

SpecificF2F one locationF2F splitF2F multipleBlended LearningDistance Learning with touchpoint centresDistance Learning

British university with its second campus outside the UK, a joint venture with a commercial group

Case study: University of Nottingham, Ningbo

Partners Wanli Education Group – Zhejiang-based commercial education provider with multiple proprietary brands

Founded


2004

6,000

University motivations Reputation – likely the key driver. Nottingham has always been a forward-thinking university and was the first to open an overseas campus in Asia (Malaysia, 2000, also a JV with a local commercial partner)Profile – first mover with physical campus in China as the international (inc mobility) market was taking off. Ambitious but well-selected overseas ventures has kept Nottingham at the forefront of perception for international education in the UK.Revenue – probably not a key motivator but the success of the model would have provided significant revenue Throughput – healthy numbers, e.g. 2+2 undergraduate. Also a very popular destination for exchange, for Nottingham UK, Malaysia and other university students.

Notes • Partnering with commercial organisations, albeit carefully selected, was considered .• Location choices were also strategic, as key markets for international education. The selection of Ningbo was somewhat

opportune based on the partner however was also very strategic given the over-supply of education programmes in the more famous cities of Beijing, Shanghai and Guangzhou. Additionally, Ningbo, Zhejiang is excellently-located for the wealthy central-eastern seaboard.

Success rating Nottingham’s Ningbo campus was a shrewd and pioneering move and one which has brought significant positive impact in terms oflocal recruitment and profile, as well as the knock-on effect to the main campus in the UK. Electing to partner a commercial organisation was a brave decision at the time, but the decision has paid off.

Success Effort

Case study: Curtin University Singapore


University to:


Quality control


yp

es


AloneConsortium

UniversityCollegeCommercial partner(:onward)Self-managed

Joint ventureRevenue sharePer capita feeSplit by deliveryFully owned




Comprehensive

SpecificF2F one locationF2F splitF2F multipleBlended LearningDistance Learning with Touchpoint CentresDistance Learning

An Australian university with a long-established campus, fully-managed by a commercial entity

Case study: Curtin University SingaporePartners Navitas (large, Private Equity-owned,

Australian pathway and managed campus provider) www.navitas.com

Malaysian commercial entity (minority)

Founded


2010

1,200 full time per year(peak of 2,000 c.2015)

University motivations Profile – presence in key strategic market has significantly increased market recognition. Key strategic location also helped the lessattractive main campus location (WA) ‘punch above its weight’ in terms of inbound recruitment Revenue – has been steady and not insignificant, although not at peak. Partnering with a commercial organisation removed any significant commercial risk to the UniversityThroughput – some X+Y programmes inc 3 site MBA however this was not a main driver as it is a fully functioning managed branch campus

Notes • The University has a stated strategy of campuses around the Pacific. • They have clearly favoured the full managed campus option and work hard to give the same student experience in all campuses,

including look and feel, and access to opportunities.• All of their managed campuses (Singapore, Malaysia, Mauritius, UAE) have different local partners, and despite this they have

managed to achieve significant cooperation between them including sharing of sales opportunities and promotion under the One Curtin banner.

• Curtin Singapore recruits roughly 50:50 local and overseas students• Overseas students are largely regional• Curtin Singapore partners with the local MoE and MoH to offer certain Nursing courses to meet local needs, an area of

specialism for Curtin.

Success rating Soon after inception, the model became a strong success and numbers were significant. Leveraging a large group such as Navitas allows strong reach and impact in terms of overseas sales and marketing reach.As Singapore has matured and become a more expensive destination, and as competition has increased with higher-profile brands, success has waned albeit still achieving a significant number

Success Effort

http://www.navitas.com/

Case study: NCUK (Northern Consortium)


University to:

Financial Academic level Quality control


Ty

pe

s


AloneConsortium






Comprehensive

SpecificF2F one locationF2F splitF2F multipleBlended LearningDistance Learning with Touchpoint CentresDistance Learning

Not for profit consortium, owned by a group of British universities, offering franchised pathways

Case study: NCUK (Northern Consortium)

Partners Multiple local-delivery partners overseas – over 60 delivery centres in 25 countries. Delivery centres range from local high schools, private colleges and state universities.

Founded


1987

5,000

University motivations Revenue – not a motivator for NCUK (although is for the owning-universities). Any surplus in the organisation is dispersed to charitable organisations.Throughput – the main driver. The universities’ motivation in establishing NCUK was to drive students onto their home campuses, and to partner in order to meet the needs of local markets and gain scale.

Notes • NCUK is a charitable organisation whose main objective is to provide throughput of students to the 10 owning universities, which represent a cross-section of institutions in the North of England, including 3 Russell Group institutions. Additionally, associate and articulating Universities allow NCUK programme graduates onward study routes at dozens of universities in the UK, USA, Australia and New Zealand.

• NCUK offer the X of X+Y programmes, with students benefitting from a wide range of universities for their Y programme. Key NCUK programmes including Foundation Year (year zero), International Year One, and Pre-Master’s.

Success rating NCUK has been a strong success in achieving the objectives of its owning universities – namely a strong throughput of well-prepared students with an increased profile for the member institutionsArguably NCUK has not met its full potential of scale and scope due to a risk-averse style and limited investment

Success Effort

Case study: Newcastle University, Johor Bahru, Malaysia



Quality control


yp

es


AloneConsortium


Joint ventureRevenue sharePer capita feeRoyaltySplit by deliveryFully owned (lease of property)




Comprehensive

SpecificF2F one locationF2F splitF2F multipleBlended LearningDistance Learning with touchpoint centresDistance Learning

British university with a small, fully-owned, single-faculty in Malaysia

Case study: Newcastle University, Johor Bahru, Malaysia

Partners EduCity Iskandar Sdn Bhd (EISB), owned by Khazanah Nasional (Malaysia’s state investment vehicle) and other state entities.

The campus is academically directly managed by Newcastle University with facilities and corporate service support from EISB.

Founded


2011

700 (NB one faculty only)

University motivations Revenue – moderate to high motivator. The University has a particularly-marketable programme to the region (medical) and the local delivery opportunity has increased student recruitment in this key strength area for the University.Awareness – with the particular faculty offering, the University has been able to grow market awareness in the medical field, inevitably having positive impacts to recruitment both to the UK and locally.Throughput – unlike neighbouring University of Southampton’s campus, which focuses on Engineering and only offers year 0, 1 and 2 of the 4-year Degrees, the Newcastle programmes are designed to be fully completed within Malaysia.

Notes • The Newcastle offering comprises exclusively of medical and related subjects, trading on the university strength and clear market need.

• EISB was created to provide a new education city in the southern Malaysian state of Johor Bahru, within 30 minutes drive of Singapore. Education within EduCity is typically offered at 60% of the price for the equivalent programme in the home country. EduCity is currently home to 8 institutions including a British boarding school, three UK Universities, a Dutch maritime institute and two Singapore colleges.

• The flagship operator at EduCity, University of Reading, opted for a comprehensive offering and occupies a 3,000 student capacity building. This has been a financial disaster leading to a write down of $60m.

• The role of EISB was originally envisaged as a developer to develop the land, streets, infrastructure, and then sell or lease the land to overseas institutions. However as the development matured, their role has evolved to provide more services including management of the operations, marketing and student recruitment etc.

Success rating Newcastle University, Johor Bahru is a prime example of a focused opportunity, an aligned offering to local needs enjoying significant success.Market potential was clearly identified and capacity matched, reducing risk and resources.A very successful model.

Success Effort



Quality control


yp

es


AloneConsortium








Case study: University of Sussex with Mahidol University, ThailandInstitutional partnership offering dual degrees in bioscience

Case study: University of Sussex with Mahidol University, Thailand

Partners Direct relationship with the international cooperation division of Mahidol University

Founded


TBC

50

University motivations Reputation – strong motivation for both parties (prestigious university in Asia, reputable western university)Throughput – moderate driver, although quality over quantity. Securing quality students into two years of UG tuition revenue.Revenue – not a significant motivator due to low price point of local programme.

Notes • Thailand is not a mature TNE market due in part to high quality local delivery. However in 2017 the MoE announced plans to encourage ‘high quality’ overseas institutions to open branch campuses on favourable (but broadly unspecified) terms. Degree subjects must be matched to Thailand’s ‘4.0 Policy’ focusing on high-value, technology driven sectors.

• Similar X+Y models exist with c.15 British University programmes and recently Carnegie Mellon have launched the first true joint campus in Thailand

Success rating A modest success for both partiesReputation enhancing for both institutions with clearly aligned and modest motivationsThe number of students is typical of a successful partnership of this kind and is well matched to the level of risk and investment on behalf of both institutions

Success Effort

TNE in Asia

Balancing academic quality with

commercial viability

Quality control management mechanisms versus cost

Ability to ensure quality

Co

st

Flying faculty

Robust SOP on local supervision

Relying on local partner

JV-managed

Recognition only

Desired range

Regular visits

Creating scalable quality control management

Commercial

• Commercial principles

• Commercial code of conduct

• Marketing and sales regulations

• Student management policies

Quality Control

• Quality assurance princples

• Academic code of conduct

• Roles and responsibilities framework

• Accreditation process

• Content

• Faculty

• Facilities

• Awards and Assessments policy

Academic Content

Designed for third-party delivery

• Syllabus

• Learning outcomes

• Detailed lesson plans

• Supporting resources

Key factors in commercial viability

Right market and location

• Mature versus emerging

• Supply versus demand

Right offering

• Detailed market-sizing research

• Aligning with local needs

Right partnership model and partner

• Matched to risk/reward perspective

• Alignment of motivations

Realistic business plan

• Linked to market-sizing

• Appropriate investment and expected returns

Right sales and marketing approach

• Driven (appropriately for education)

• Appropriate for local context

TNE in Asia

Leveraging the Finnish advantage


• Perception of mature and successful economy, technologically-advanced• High-achieving education system• Limited exposure to international education markets – no reputation damage and

not having high numbers to ‘defend’• Perception of Finnish education being ‘different’ to traditional Asian style

• Not known as a typical study destination• Traditional universities not offering Bachelor’s degrees taught in English• Perception versus reality of language of instruction• Limited exposure to international education markets – very little brand recognition

of individual institutions • Perception of Finnish education being ‘different’ to traditional Asian style


Focused offerings leveraging Finland’s core strengths:

• Innovation

• Advanced technologies

• Renewable energy

• Green economy

• Sustainability

• Education

Mapped to local strategic objectives and market demand

Aligned partners sharing similar visions and compatible motivations

Niche programme offerings in mature TNE markets

Broader offerings in emerging markets

Strongly consider Nordic Consortium for a ‘total greater than sum of parts’ approach

TNE in Asia

Next steps and recommendations

Next steps and recommendations

Groundwork

Audit of current partnerships

Capture equation and motivations

Prioritisation of markets by key criteria

Explore partnership development plans

Consider third party partnership

management

Scope a Finnish consortium approach

Mapping of key ‘Finnish advantage’

subjects to local/national government

Execution

Creation of robust but commercially-

viable quality control SOP

Proactive, targeted partner

development outreach

Willingness to transform or exit current

partnerships

Documents

Transnational Education (TNE) - Opetushallitus...• Vietnam is a strong TNE market with significant potential. Overseas study is common and there is a growing trend for domestic Overseas